XAU/USD falls to $4,551 as rising US yields and delayed Fed cuts weigh on bullion amid geopolitical risks.
Gold prices slid more than 2% on Friday, with XAU/USD trading at $4,551 after hitting a low near $4,511. The decline follows concerns that escalating US-Iran tensions could fuel inflation, prompting central banks to maintain higher interest rates for longer.
US Treasury yields surged, with the 10-year note rising 10 basis points to 4.591%, nearing its 2025 high. The US Dollar Index (DXY) climbed 0.33% to 99.19, further pressuring gold. Recent inflation data and stronger-than-expected US industrial production reduced expectations for Federal Reserve rate cuts this year.
Fed policymakers have signaled a focus on containing inflation, with some leaving the door open for additional hikes if price pressures persist. Markets now anticipate the Fed holding rates steady through year-end under new Chair Kevin Warsh.